If Wall street is the home of legitimate and honorable enterprises, it is also a chosen centre from which the worst of swindlers conduct their operations. From time to time advertisements appear in the city dailies and in the newspapers throughout the Union, announcing that such and such a firm, the name of which is given, is prepared to receive small orders for the purchase and sale of stocks on the "Combination System," and guaranteeing large profits to all persons sending the firm their orders accompanied with remittances of from $10 upward. 

These firms announce that they have peculiar facilities for operating in the stock market, and that their system is so nicely arranged that persons entrusting them with their orders cannot fail to receive a large return upon their investments. Money may be sent by express, or by postal order or registered letter.

The country is flooded with these advertisements. The religious press teems with them, and not long since several of the leading religious weeklies warmly endorsed a combination scheme, and commended it to their subscribers. This particular scheme turned out to be one of the most barefaced swindles ever attempted in New York, and was broken up by the refusal of the postal authorities of the United States to allow its proprietors to use the mails for their nefarious business. 

It was proven that the names appended to the advertisements were bogus, and that all the various schemes of the kind at that time in operation in New York were owned and operated by one man; that no actual operations of any kind were conducted by him in the stock market, and that he coolly pocketed all the remittances sent to him, without any intention of making a return of any description to the senders.

These advertisements do their work well. There are always men and women ready to be caught by cheap promises of sudden wealth, or handsome profits on small investments. From all parts of the Union money is sent to the bogus bankers, who pocket it, and laugh at the innocence of their victims. Their mails are among the largest received at the New York Post Office, and every letter contains a remittance.

A little more than a year ago the attention of the postal authorities of New York was called to the operations of the bogus bankers. The matter was referred to the Postmaster General at Washington, and a special agent was detailed to investigate it, and in his efforts he was cordially assisted by the officials of the New York Stock Exchange, who were anxious to break up the infamous business. 

The investigations of the agent were directed towards several firms doing business under the following names: "Lawrence & Co., " 19 Broad street: "Adams, Brown & Co., " 28 Broad street; "Allen, Jordan & Co.," 54 Wall street; and "Barnes, Gibson & Co.," 11 Broad street and 55 Exchange Place. The investigation was thorough and satisfactory, and resulted in obtaining such conclusive evidence that the Postmaster General issued an order forbidding the Postmaster at New York to pay postal orders or to deliver registered letters to any of these firms.

It was ascertained by the special agent that all of the above named firms were bogus, and that they were all the property of one man, whom we shall term the proprietor, who had obtained control of them by recording, under the laws of the State of New York, fictitious articles of partnership. In order to carry on the business, he made an arrangement with two men, who were to assume the direct management of the various firms.

They agreed to pay the proprietor the sum of $12,500 a month, or $150,000 per annum, for the net receipts of the single firm of "Lawrence & Co.," and an equal amount for the privilege of transacting business under two of the other bogus firm names. The interests of the proprietor were guarded by his having confidential agents to be present at the opening of the letters containing remittances.

These letters came in at such a rate as to make the profits of "Lawrence & Co." alone, for nine months, from March 1st to December 1st, 1879, from $17,500 to $20,000 per month, after paying all expenses, inclusive of very extensive advertising, and salaries of $100 a week to each of the two men employed by the proprietor. The profits of the other bogus firms were in proportion. Now, this is no exaggerated story. The facts are given as stated by the special agent of the Post Office Department; they are known to the Post Office authorities at Washington and New York, and to the officials of the New York Stock Exchange, who can vouch for their truthfulness.

Schemes of this kind appear from time to time. The authorities discover them, and break them up, but in a little while others, under new names, take their places, and when investigated, are generally found to be in the hands of the old offenders. The manner in which these bogus bankers, stock swindlers, or whatever one may choose to term them, conduct their operations, is very simple. They send out their advertisements, which appear in thousands of newspapers throughout the Union. Thousands of foolish people are attracted by them, and either at once send their remittances, or write for further information. 

In return, circulars are sent to parties making inquiry, setting forth the merits of the "Combination Scheme," and showing how even so small a sum as ten dollars can be used to advantage in the great operations of Wall street. "By combining your money with somebody else's," says the circular, "the probabilities of profit are far greater than by any other system, while the risk is diminished to the very lowest point and limited to the amount invested. Each customer has exact justice, and at the same time obtains all the advantages of the largest capitalist. By the combination system we concentrate our whole energies and capital on the most attractive stocks; keep the market well in hand; buy and sell at any hour; make quick turns; cover sales; and above all, succeed, when others fail, from force of circumstances."

To the man or woman bent on making a successful venture in stocks, this seems perfectly clear, honest and above-board. The money is sent, and the return mail brings the sender a certificate of ownership of so many shares of stock in the "Combination Scheme." The firm promise to make a weekly report of its operations, and at the end of one month to close the combination and divide its profits, pro-rata, among the shareholders. It expressly stipulates, however, that no part of the profits or capital shall be withdrawn until the close of the combination. 

The certificate is accompanied by a pamphlet, containing testimonials (all bogus) from persons who have been benefited by the system; some showing how the writers have been saved from financial ruin by the investment of one hundred dollars in the combined scheme, and all testifying their delight at the immense profits realized from small investments, and thanking the firm for the fair and honorable way in which they have been treated.

In about a week or ten days a printed report is received by the certificate-holder, showing a handsome profit on the first week's transactions-the profit being generally about twenty-five per cent. The innocent victim is delighted. Surely he is on the royal road to wealth at last. Another week passes, and a second report is received, showing that the fortunate investor has gained fifty per cent. on his investment. This report is accompanied by a letter or circular, setting forth the merits of a new combination scheme, just forming, and urging the victim to send one hundred dollars, or as much as he feels justified in risking, in order to participate in its benefits.

A large percentage of those receiving such circulars, delighted with the reports of their first venture, make a second investment. The third week arrives, and with it comes another letter, or circular, from the managers of the combined scheme. The victim opens it exultingly, but he has not read much of the communication before his hair begins to stand on end. The managers inform him, "with great regret," that they have no profits to report this week; that owing to the unprecedented haste that had marked the efforts of a large number of small speculators to get rid of their holdings," the market had become completely demoralized, and the great operators bewildered. "A decline had been precipitated," they add, "that obliged us to make great personal sacrifices, in order to protect our patrons; and, although we have lived through the storm, we were obliged, most reluctantly, to witness the destruction of many a well-conceived and judiciously-executed combination."

The victim is now seriously alarmed, not only for the fate of his first investment and its fifty per cent. profits, but also for the second, from which he has, as yet, heard nothing. He sits down and writes to the managers, directing them to close his account, and forward him the amount sent them, with the profits to date, less their percentage. In reply he receives a few curt lines, calling his attention to the "contract" they sent him at the time they received his money, wherein it was stated that "no part of profits or original capital is to be withdrawn until the close of the combination." 

In other words, he is bluntly told that he has no control over the investment. For the next week the victim lives in suspense. Then comes the end. A circular is received from the managers, announcing the failure of the combination and the loss of all the money and all the profits. A melancholy preface alludes to a dastardly conspiracy headed by Jay Gould and some other well known speculators, which had so knocked the market to pieces that thousands had been ruined. In spite of their best efforts, say the managers, the combination has gone down with the rest, and they have suffered terrible losses themselves. "Trusting to appearances," they continue, "well calculated to deceive the most experienced veteran on change, we, unfortunately, were caught in the same dreadful storm that has proved so fatal to many of the best known men on the street.

It is all over, the investor's dreams of wealth are rudely broken, and he must get over his disappointment the best way he can. This is not the end of it, however. In a few days he receives a letter from the managers asking another investment, and promising a return in thirty days that will more than compensate him for his previous loss. Strange to say, so fatal is the influence of stock gambling, thousands respond to this impudent request, and send their money, to be swindled a second time.

Pamphlets, circulars, and other publications are sent out through the country by the bogus bankers; the mails are burdened with tons of this matter, which is scattered broadcast throughout the land. Clergymen, country merchants, lawyers, mechanics, everybody who is supposed to be able to raise ten dollars, are plied with these printed appeals to try the wonderful combination system, and thousands from all parts of the country respond. None of these dupes ever receive a cent either of the money invested or of profits. They are simply fleeced. It is strange but true, that men who in ordinary business transactions are regarded as sharp and shrewd, and not easily taken in, yield by thousands to the temptations of the stock swindlers, and risk their money as readily as the veriest greenhorn that ever lived.

Be warned, O! reader of these pages. What we have written is true, and carries its moral with it. If you want money, work for it. Keep out of Wall street, and have nothing to do with bankers and brokers who send you circulars and solicit your patronage in combination or other ventures.